Best Budget-Friendly New Cars Under $25,000
These reasonably-priced cars perform well in Consumer Reports' tests and are safe, fuel-efficient, and reliable
Although the average new-vehicle transaction price topped $49,000 in February 2026, according to Kelley Blue Book, many automakers still offer well-equipped, affordable sedans and hatchbacks for $25,000 or less. To find a safe and reliable model at this price, buyers should look past the sticker price and examine the ratings from Consumer Reports’ independent tests and owner surveys.
Our experts’ analysis identifies the best compact cars and hatchbacks under $25,000, based on Consumer Reports’ real-world road tests and member surveys. Every model on this list is recommended and well-equipped at this price.
Sign up for CR’s Cars email newsletter to be notified when we post our latest road tests.